Daily Briefing September 17 2019
Free to read: Shipping shakes off short-term Saudi disruption but awaits detail on energy trade outlook | Between Abqaiq and a hard place | Cut in Saudi output to hit tanker rates | 2020 sulphur cap complicating bunker effect of Saudi oil output cut
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Despite an initial 20% hike in the oil price with associated bunker price implications, the immediate disruption to shipping following the attack on Saudi Arabia’s production over the weekend looks manageable. The vagaries of alternative energy sourcing and energy trade reorganisations could yet bring opportunities along with the inevitable risk.
The five factors shipping should be looking at in the wake of the weekend attack on Abqaiq — the largest oil processing facility in the world and seen as the nerve centre of the Saudi energy system.
Tanker rates will likely be damped by the recent attack on Saudi Arabia’s key oil plants — including the Abqaiq processing facility and the Khurais field — in the short run, but the longer-term prospects remain upbeat.
The abrupt drop in Saudi oil production and exports has not had a significant impact on the bunker supply market despite price hikes, according to Danish bunker supplier Monjasa.
Saudi Aramco has sought flexibility from its major crude buyers in Asia to take heavier grades and switch or delay loading dates following supply disruptions from its two key plants that pump out light sweet crude, Argus Media reported.
Asian importers of Saudi oil expressed confidence that they will still have access to supplies but the market may turn to a slight premium from the discount previously forecast due to a slowing global economy.
Blank sailings continue to frustrate shippers and cargo owners. New measurement shows which alliances void voyages the most.
Before London International Shipping Week, the maritime headlines were dominated by possible consequences of the trade spat between the US and China, writes Richard Clayton. Momentarily the spotlight was on the outlook for the UK after the divorce from the European Union; now all eyes are on rising tension between Saudi Arabia and Iran.
The Lloyd’s List Podcast: Key takeaways from LISW — the team have squeezed into their finest formal attire, popped a cork and gathered round the microphone to give you a prosecco-fuelled reflection on the blur that was London International Shipping Week. From zero carbon politics and 2050 targets to training and, of course, Brexit — we’re not short of an opinion or five on the biggest issues of the day.
The International Union of Marine Insurance has won additional affiliations from national trades associations in Russia and Myanmar during the past year, and is formally accepting ALSUM — the Latin American marine underwriters’ association — into membership, according to its president.
Equinor continues cleaning up an onshore oil spill at its South Riding Point terminal in the Bahamas, which was damaged by Hurricane Dorian, saying a team has started to recover oil and move it into tank storage.
John Fredriksen-invested Golden Ocean Group is adding another $10.2m to back dry bulk-focused Singapore Marine’s acquisition of most of the assets and operations of Swiss Marine.
Cargill and Maersk Tankers have teamed up to create a new joint pool for medium range tankers.
Cosco Shipping Ports, the port arm of state conglomerate China Cosco Shipping, has named Feng Boming as its new chairman as part of management changes seen at the parent company.
Greece-based M/Maritime has taken delivery of two more bulkers including its largest vessel to date.
Iran has given its strongest indication yet that it will release a UK-flagged tanker it has detained for nearly two months.